December 2, 2010
- in Uncategorized by schooloftrade
Trade The News Morning Prep and Day Trading Gold, Crude Oil and Euro Futures
Thursday mornings always mean busy day in the markets.
Today’s news can be found at http://schooloftrade.com/news.php
8:30 Initial Jobless Claims, Continuing Claims
10:00 Pending Home Sales
10:30 Natural Gas Inventories
10:00 Pending Home Sales
10:30 Natural Gas Inventories
Jobless Claims and Pending homes sales are big news numbers to watch today, we will review the specifics of these news events in the trade room this morning.
Now that I know the news today, lets take a look at the dollar index futures
The Dollar Index has come off the higher highs we saw late last week and now trading sideways and bearish back down to the levels we saw early last week.
As this market chops its way back down, I’m watching key levels of support on the way down.
Dollar support will equal resistance on the markets we trade, so keep that in mind.
Gold Futures
Gold Futures
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Gold futures are trading at the top of the price wedge (yellow trend lines) and we have a narrow trading channel (blue trend lines) which we are waiting to see what happens with.
Im looking to buy the lows of this channel above 1391, or I will also look for the failure of this channel and sell the breakout short below 1387.1
I will review the faster timeframes for additional support below 1387.1 before I take that trade, and we will be reading tape to decide who has control over this market for trade direction.
Crude Oil Futures
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Crude Oil is in a much better spot than gold this morning technically speaking.
I can see crude oil at the highs of the price channel, and im looking for 2 opportunities:
First, ill sell the highs below 86.36 to be sure I get BELOW the support levels there for a nice wide open drop down to 86.00 and covering the short around 85.00
IF the market holds these highs we will see it on the time and sales window and we will use the speed of the tape and the momentum to tell us if these highs are going to break.
Look for a breakout trade long above 87.20, but remember that buying a pullback after news highs are made will always be the safest way to trade the breakout at the highs of the channel.
I will review this strategy of buying a pullback in the room today.
Euro Futures
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The Euro Continues to rise off the lows of the channel, exactly what we expected from yesturday…
We bought the euro at the lows yesterday morning and with some patience to let the trade play out we have made some great profit on this trade off the lows of the price channel.
I drew the trigger zone we use for our retracements, and you can see we still have plenty of room for this move to keep going up into 1.3300
If you haven’t taken profit at 1.2300 please do so, take ½ off now and im going to hold the final portion into 1.3300
We have the dollar dropping off previous highs from last week, so this will continue to support the euro on this move up.
Notice the strong price channel, use the LOWS of this price channel as buying opportunities to add to your position or get into a new position.
I will review the pattern and entry rules with our members today in the room.
